Note 3 - Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2012

Supplemental Balance Sheet Disclosures [Text Block]

Note 3 - Supplemental Balance Sheet Information

a. Inventory

Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. The composition of inventories was:

	December 31,
	2012		2011

Raw materials	$	15,023	$	20,097
Work in process		4,863		4,770
Finished products		10,484		10,100
		30,370	$	34,967

b. Property, Plant and Equipment

Major classes of property, plant and equipment consisted of the following:

	December 31,
	2012		2011

Land	$	123	$	123
Buildings and Leasehold Improvements		7,381		7,000
Machinery and Equipment		46,606		44,770
Furniture and Fixtures		1,810		1,894
Computer Hardware and Software		4,103		3,815
Construction in Progress		1,275		641
		61,298		58,243
Less: Accumulated Depreciation		48,883		45,655
	$	12,415	$	12,588

Estimated costs to complete construction in progress as of December 31, 2012 and 2011 was approximately $1,154 and $1,032, respectively.

Depreciation expense was $3,306 and $3,629 for the years ended December 31, 2012 and 2011, respectively.

c. Impairment of Goodwill, Intangible Assets and Long-Lived Assets

We applied the provisions of FASB ASC Topics 350-20 and 820 during the annual goodwill impairment analysis performed in September and October 2012. The first, optional, step of the goodwill analysis is to determine if it is more likely than not that the fair value of the identified reporting units exceeds the respective carrying value. This qualitative analysis includes but is not limited to, an evaluation of the macroeconomic, industry or market, and cost factors relevant to the reporting unit as well as financial performance and entity or reporting unit events that may affect the value of the reporting unit. We performed the qualitative assessment on two out of three of the identified reporting units noting that no further testing was indicated. If the conclusion that it is more likely than not that the fair value of the reporting unit exceeds its carrying value cannot be supported, or if the reporting unit is not subjected to the qualitative assessment, the fair value of the reporting unit is determined using a quantitative assessment. The fair value for our one reporting unit subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used an income approach, to estimate the fair value of the reporting unit, using Level 3 inputs. To estimate the fair value of the reporting unit, we used significant estimates and judgmental factors. The key estimates and factors used in the valuation model included revenue growth rates and profit margins based on internal forecasts, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples. As a result of the goodwill impairment test performed during 2012 and 2011, no impairment was indicated.

Similar to goodwill, we applied the provisions of FASB Topics 350-30 and 820, including the early adopted ASU 2012-03, during the annual indefinite-lived intangible asset analysis performed in September and October 2012. The first, optional, step of the analysis is to determine if it is more likely than not that the fair value of the indentified indefinite-lived intangible assets exceeds the respective carrying values. This qualitative analysis includes but is not limited to, an evaluation of the macroeconomic, industry or market, and other factors relevant to the indefinite-lived intangible asset. We performed the qualitative assessment on two of the four identified indefinite-lived intangible assets noting that no further testing was indicated. If a conclusion that it is more likely than not that the fair value of the indefinite-lived intangible asset cannot be supported or if this optional step is not applied to the indefinite-lived intangible asset, the fair value of the indefinite-lived intangible asset is determined using a quantitative assessment. The fair value for our two indefinite-lived intangible assets subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used a royalty relief approach, to estimate the fair value of the reporting unit, using Level 3 inputs. To estimate the fair value of the reporting unit, we used significant estimates and judgmental factors. The key estimates and factors used in the valuation model included revenue growth rates, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and determined royalty rates. As a result of the impairment test performed during 2012 and 2011, no impairment was indicated.

During 2012 and 2011, we also evaluated certain fixed assets for impairment utilizing valuation methods that are classified as Level 3 inputs. Based upon the results of this evaluation, no material impairment was indicated.

d. Goodwill

The following table summarizes the goodwill activity by segment for the years ended December 31, 2012 and 2011:

	Battery &		Communications		Discontinued
	Energy Products		Systems		Operations			Total

Balance at December 31, 2010	$	4,758	$	11,493	$	2,025		$	18,276

Effect of foreign currency translations		80		-		-			80

Balance at December 31, 2011		4,838		11,493		2,025			18,356

Sale of RedBlack
Communications						(2,025	)		(2,025	)
Effect of foreign currency translations		13		-		-			13

Balance at December 31, 2012	$	4,851	$	11,493	$	-		$	16,344

e. Other Intangible Assets

The composition of intangible assets was:

	December 31, 2012
			Accumulated
	Gross Assets		Amortization		Net

Trademarks	$	3,564	$	-	$	3,564
Patents and technology		4,495		3,702		793
Customer relationships		3,998		3,366		632
Distributor relationships		380		330		50
Non-compete agreements		217		217		-

Total intangible assets	$	12,654	$	7,615	$	5,039

	December 31, 2011
			Accumulated
	Gross Assets		Amortization		Net

Trademarks	$	3,563	$	-	$	3,563
Patents and technology		4,492		3,440		1,052
Customer relationships		3,993		3,143		850
Distributor relationships		378		310		68
Non-compete agreements		396		396		-

Total intangible assets	$	12,822	$	7,289	$	5,533

Amortization expense for intangible assets was $497 and $627 for the years ended December 31, 2012 and 2011, respectively.

The change in the cost value of total intangible assets is a result of the effect of foreign currency translations and our 2012 disposition of RedBlack which included a fully amortized non-compete agreement.